Samoa: Power Sector Expansion Project

Sovereign Project | 38183-013 Status: Active

Summary

The Project supports the Government's overarching objective of providing sustainable and reliable electricity services to all consumers at cost-efficient prices. The Project will improve the capacity of the power sector to meet growing electricity demand and improve quality, reliability, and cost-effectiveness of power supply by (i) improving the financial performance of EPC, (ii) supporting EPC's investment plan to meet growing demand, (iii) improving the operational efficiency of EPC, and (iv) establishing effective regulation of the power sector.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

Title Date
Proposed Loan Oct 2007

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Project Name Power Sector Expansion Project
Project Number 38183-013
Country Samoa
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0087-SAM: Power Sector Expansion Project
Asian Development Fund US$ 15.39 million
Grant 0101-SAM: Power Sector Expansion Project (Funded by the Government of Australia)
Government of Australia US$ 8.00 million
Loan 2368-SAM: Power Sector Expansion Project
Asian Development Fund US$ 26.61 million
Loan 8232-SAM: Power Sector Expansion Project
Japan Bank for International Cooperation US$ 38.00 million
TA 4994-SAM: Implementing the Samoa National Energy Policy
Government of Australia US$ 900,000.00
Finland (w/ LoA) US$ 350,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Description The Project supports the Government's overarching objective of providing sustainable and reliable electricity services to all consumers at cost-efficient prices. The Project will improve the capacity of the power sector to meet growing electricity demand and improve quality, reliability, and cost-effectiveness of power supply by (i) improving the financial performance of EPC, (ii) supporting EPC's investment plan to meet growing demand, (iii) improving the operational efficiency of EPC, and (iv) establishing effective regulation of the power sector.
Project Rationale and Linkage to Country/Regional Strategy

Reliable power supply is essential for enhancing the quality of life of all Samoans. Good performance of the power sector and reliable electricity services are vital for promoting private sector investments to diversify the economy and achieve sustainable economic growth. The performance of the power sector is increasingly becoming a hindrance to economic growth. High system losses and voltage drops have resulted in poor reliability and quality of electricity supply. As a consequence, consumers are resorting to more expensive self-generation.

With peak demand growing at about 3% annually in the medium term, EPC's challenge is to improve its operational efficiency and financial performance while ensuring sufficient generation and transmission capacity is available to provide a reliable and high quality electricity supply.

EPC's investment plan 2008-2015 is driven by (i) the need to improve EPC's collection performance, (ii) the need to remove transmission bottlenecks to improve reliability and quality of supply, and (iii) capacity requirements to meet growing peak demands. In the longer term, the objective is to reduce Samoa's reliance on imported fuels by promoting clean, indigenous, and renewable energy resources.

Although Samoa's debt situation has significantly improved, the economy remains import-dependent and vulnerable to climatic and global price shocks. The Asian Development Fund (ADF) grant to the Government will ease the macroeconomic impact of the large financing requirements in the power sector.

Impact Access to sustainable and reliable electricity services at affordable prices.

Project Outcome

Description of Outcome Improved quality, reliability, and cost-effectiveness of power supply.
Progress Toward Outcome The project has progressed satisfactorily and at June 2016, overall implementation was 88.5%. EPC's original investment plan comprised: (i) 4 generation projects; (ii) 11 transmission projects; (iii) single- and three-phase prepayment metering project; (iv) a system for control and data acquisition (SCADA); and (v) portable equipment for measuring voltage and current stream-flow gauging, with an estimated completion date of 30 June 2016. To date, 11 generation projects and 25 transmission projects have been completed and the single- and three-phased prepayment metering, SCADA and portable equipment for measuring voltage and current stream-flow gauging, have been procured. 4 new candidate subprojects are at the planning stage and project management consulting services are ongoing.
Implementation Progress
Description of Project Outputs

The financial performance of EPC improves.

Operational efficiency of EPC improves

EPC's investment plan meets demand requirements.

Effective regulation of the power sector is established.

Energy demand-side management

Development of clean energy.

EPC's investment plan meets demand requirements

Status of Implementation Progress (Outputs, Activities, and Issues)

EPC's disconnection policy reviewed in August 2008 and revised procedures implemented. Fuel audits at Upolu and Savaii generation stations introduced 1 May 2008, conducted monthly and results reported to the Board. EPC regularly submits adjustments to tariff rates to the Regulator for approval, before implementation. 98% of all customers use prepayment meters. As of 30 June 2015, accounts receivables was 1.22 months of sales; self-financing ratio was 17.70%; and debt-service ratio was 1.21.

Baseline figures of Total System losses established on a 12-month moving average in Sep 2008 are: Upolu: 15.7%; Savaii: 18.2%; EPC: 15.9%. Updated 12 month moving average of total system losses now reported monthly to the Board. End of Dec 2008 are: Upolu: 17.1%; Savaii 18.2%; EPC: 17.2%. As at 30 June 2015, total system loss was 11%.

EPC''s investment plan meets estimated demand and is regularly updated to address needs.

The Electricity Act 2010 was passed into law in 2010. A review of the current EPC Act 1980 and the developing of Regulations has commenced and is scheduled for completion in Dec 2016. The Office of the Regulator of Telecommunication Sector, which was established in 2006, was also appointed as the Power Sector Regulator in 2010.

Public awareness activities for energy conservation and demand-side management is ongoing.

US$1m from the Clean Energy Fund has been committed for the rehabilitation of hydro-power stations under another ADB project (the Renewable Energy Development and Power Sector Rehabilitation Project), which is scheduled to commence in Q3 2016.

Geographical Location Independent State of Samoa

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects IEE and associated construction environmental management plans are routinely monitored. EPC have prepared environmental compliance reporting and have been reporting semi-annually on safeguards with the recent reporting period of January-June 2016. The required due diligence for the new candidate subprojects are being prepared.
Involuntary Resettlement The required due diligence for the new candidate subprojects are being prepared.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services Consulting services will be required for (i) project management, (ii) preparation of candidate subprojects, (iii) construction supervision, and (iv) contract management. Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Firms carrying out project implementation consulting services will be selected through international competition using quality-and cost-based selection method. The project manager will be recruited internationally as an individual for an initial period of 36 months. Consultants mobilized.
Procurement

The equipment, materials, and works financed by the proceeds of the ADB and JBIC loans will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). ADB's standard bid documents will be used for procuring ADB and JBIC financed goods and services. The requirements of any environmental monitoring and management plans will be reflected in all civil works bidding and contract documents.

International competitive bidding will apply to core subprojects. Procurement comprise a plant design, supply and install contract for Component A, and a supply and install contract for Component B.

Responsible Staff

Responsible ADB Officer Grace King
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance
Hinauri Petana
[email protected]
Central Bank Building, Matafele, Apia, Samoa

Timetable

Concept Clearance 03 Sep 2006
Fact Finding 23 Apr 2007 to 11 May 2007
MRM 19 Jun 2007
Approval 21 Nov 2007
Last Review Mission -
PDS Creation Date 27 Jan 2008
Last PDS Update 20 Sep 2016

Grant 0087-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2007 11 Dec 2007 19 Jun 2008 31 Dec 2016 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 54.00 Cumulative Contract Awards
ADB 15.39 21 Nov 2007 13.11 0.00 85%
Counterpart 38.61 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 13.00 0.00 85%

Grant 0101-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2007 18 Dec 2007 19 Jun 2008 31 Dec 2016 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 0.00 21 Nov 2007 0.00 7.87 98%
Counterpart 92.00 Cumulative Disbursements
Cofinancing 8.00 21 Nov 2007 0.00 7.67 96%

Loan 2368-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2007 11 Dec 2007 19 Jun 2008 31 Dec 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 38.61 Cumulative Contract Awards
ADB 26.61 21 Nov 2007 25.15 0.00 96%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 25.12 0.00 96%

Loan 8232-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Oct 2007 10 Dec 2007 14 May 2008 14 Nov 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 38.00 Cumulative Contract Awards
ADB 0.00 04 Oct 2007 0.00 37.79 75%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 38.00 04 Oct 2007 0.00 37.74 75%

TA 4994-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2007 05 Dec 2007 05 Dec 2007 14 Feb 2010 30 Jun 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,250,000.00 335,000.00 0.00 0.00 0.00 1,585,000.00 21 Nov 2007 1,425,002.77

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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